On his nationally syndicated radio talk show Monday, host Mark Levin told listeners that the stock market crash of 1929 is not what caused the great depression, but rather, the cause was government policies such as protectionism, taxes, and tariffs.
“The 1929 stock market crash did not cause the depression,” said Mark Levin. “It certainly added to it. But government policies ripped the heart out of our economy – protectionism, taxes, tariffs, so forth.”
Levin’s comments compare the one trillion dollar stimulus proposed by President-elect Donald J. Trump to the infrastructure programs implemented by President Franklin Roosevelt in the 1930s that justified government control.
Below is a transcript of Levin’s comments:
“So here we have a progressive stimulus spending plan. Maynard Key[n]es, pumping the prime and priming the pump. Is this really the way we want to go, folks, to have two parties pushing this agenda now? Is FDR the example? Do we want 20 percent unemployment, 24 percent unemployment? Is that what we want? And not just business stagnation but actual loss of economic growth?
“The New Deal didn’t have to happen. A recession was turned into a horrific recession, into a horrific depression. The federal government, the Republicans, decided to intervene, often for political reasons.
“1922 you had a massive tariff placed on agricultural goods coming into the country because the Republicans represented a lot of these farm states, and they said ‘We want to save American’s farms, and we want to save farm families.’ And they did the opposite.
“That was such a great idea, eight years later they had another tariff, but this tariff was on thousands of products. And not only that, taxes were significantly raised.
“Well that was a bad idea, wasn’t it? The 1929 stock market crash did not cause the depression. It certainly added to it. But government policies ripped the heart out of our economy. Protectionism, taxes, tariffs, so forth.
“Franklin Roosevelt comes to town, and not only does he build on what Hoover did, he does so massively. And you see, the other damage that comes from this isn’t just economic but it’s the Constitutional system. Our Constitutional system has never been the same.
“The reason we have a massive bureaucracy now – it started in the 1900s – but really, the reason we have it, is because of the New Deal. The packing of the courts, the justifying governmental action. But it doesn’t seem to matter.
“We have massive entitlement programs.
“Why are these trust funds all going bankrupt? Why does the highway trust fund never have any money in it? Why has the disability trust fund gone broke – summer before last? Why is Medicare going broke in eleven years and social security in sixteen years? What happened to all that money?
“Well it was taken out of these trust funds, replaced with IOU’s, and then that money was used for infrastructure, for the general welfare, for actual welfare.
“On top of that, we have over 200 trillion dollars in unfunded liabilities.
“On top of that, we have 20 trillion dollars in federal operating debt.
“Ironically, a good chunk of that $20 trillion in debt is owed to China. So I’m guessing when we do this one trillion-dollar infrastructure boondoggle, and we pretend that it’s all privately funded, we’ll owe China more money. Go figure.”